How Long Can Luxury Goods Be Arrogant When Sales Performance In China Is Bottlenecks?

< p > according to the latest research launched by the world's top luxury experts, global luxury sales growth is expected to be 50% lower in 2012 than in 2012.

The main reason lies in China's sales growth bottleneck and consumer confidence decline. Some experts say, "it is precisely those brands' ambition to pursue profits in China that has led to its decline in China".

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< p > strong > 1. Sales growth slows down. Luxury dream in China awakens < /strong > /p >

< p > recently, a number of foreign luxury brands released the first quarter results in 2013, which showed that amazing sales performance was no longer there and sales growth was only maintained in single digits.

French luxury giant LVMH group's quarterly results showed that sales increased by only 6% over the same period last year, compared with 25% in the same period last year.

Hermes's sales growth in the first quarter of this year was only 10.3%, the lowest since 2009, and 2009 is the most severe year in the global recession.

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< p > LVMH and GUCCI parent company Kering also expect that this year there will be a marked decline in performance.

In fact, since last year, the Chinese feast of luxury goods is coming to an end.

Statistics from Bain consulting show that the growth rate of luxury consumption in mainland China dropped from 30% in 2011 to 7% in 2012, and the change was like roller coaster.

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"P", which has been the engine of luxury goods growth in recent years, is also facing the dilemma of slowing down. From many earnings reports, it can be shown that the most serious decline in consumer performance is often the luxury brand. This shows that after the rapid development and rapid expansion of luxury goods, China has gradually approached the market critical point. On the one hand, they are expanding their brands, and on the other hand, with the improvement of popularity, the brand value is declining.

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< p > the consumption concept of Chinese consumers is upgrading. With the maturity of consumer psychology, the psychology of brand consumption (paying attention to LOGO, buying big cards) and premium consumption (willing to pay high prices for luxury goods) is becoming more mature. China's conspicuous consumption psychology is gradually decreasing.

In addition, since 2012, the overall economic situation has slowed down and negative information has emerged in the luxury sector.

Including industry, service quality and other negative information, as well as luxury electric business complaints, seriously affected consumer confidence.

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< p > < strong > two, luxury service: "it seems to be putting on a shelf" < /strong > /p >

< p > people in the industry say, "some brands are on the shelf in terms of service and are rather arrogant."

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< p > although China has become the largest consumer of luxury goods, luxury goods after-sales service in China is also a luxury.

It can be said that Chinese consumers only pay a high price, but it is hard to match the high quality after-sales service.

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< p > many consumers have similar experiences: they bought a big brand handbag or watch at a high price. They always have no maintenance when they encounter damage or need maintenance.

Brand stores also tell consumers in real time that they do not sell free after-sale services.

Consumers spend a lot of money and time on luxury goods.

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< p > buy a problem at a big shop. You can't replace it if you take it back. It can only be repaired.

He will tell you that there are some accessories missing and need to be sent to Europe for repair. It will take one or two months to get it back.

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During the "315" period this year, the industry pointed out that most of the European luxury brands' complaints handling standards for consumers in other countries will be resolved in time. Only in the most consuming Chinese market in the world, the performance of luxury brands has not been fully satisfied with consumers. The average sales complaints of the same luxury brand in China are more than 65% per year on average than in Europe. "P"

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< p > this will greatly affect consumers' consumer confidence and consumer sentiment, resulting in a lack of trust.

This is a problem that luxury brands must face in China's long-term development.

Luxury brand sales terminals have been maximized in China, but there is no matching development of service terminals.

Stores can develop to three or four line cities, but the maintenance center does not drive to three or four line cities.

Moreover, there are foundry and complex dealer systems in China. In the production process, the control of product experience and service links is decreasing.

This does not match the high price.

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< p > strong > three, behind the dark: is the luxury brand worthy of high social status? < /strong > /p >

It was reported shortly before the "P" that an executive director of the luxury foundry factory said, "thousands of thousands of packages can only earn two bottles of mineral water, and the profits are as thin as a piece of paper!" < /p >

< p > this enterprise has seven or eight brands, such as COACH, PRADA, ARMANI, BURBERRY and so on, with an annual output of 1 million 600 thousand -170 and ten thousand luxury brand packages.

The executive director of the factory said that the gross profit of the luxury foundry would not exceed 10 points, and the foundry enterprise would continue to operate on a large scale.

He said, for example, a COACH package priced at 3000 yuan, we sold to Hongkong trading company 120 yuan, the cost of 100 yuan, of which 45 yuan for material costs, 20 yuan for labor costs, 35 yuan for the rental of water and electricity and other costs, a package of only 20 yuan to make money.

This is a good situation. Sometimes the cost is not well controlled. A bag often earns only 5 yuan, that is, two bottles of mineral water.

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The status quo of the OEM is less than that of the products they produce. Although the workers are working in the world, they may be the world's top and expensive bags, < a target= "_blank" href= "http://www.91se91.com/" > clothes < /a >.

In bad working conditions, workers are making things that they will not buy for the rest of their lives.

These luxury factories have been described as sweatshops more than once.

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< p > these foundries hiding behind luxury goods can only get very little benefit in the whole industry chain. Of course, this is not unique to the luxury goods industry.

This question reflects whether luxury goods should be high priced.

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< p > in primary market countries, skimming strategy (pursuit of high profits and high pricing) is effective, and it can be effective in the short term, which can bring high profits to enterprises. But with the development of the market, the bubble will gradually decrease with the development of logistics and information flow and the increase of consumption concept.

Consumers have realized that there is a gap between the high price and the cost, and are no longer willing to pay the premium.

The Chinese market is too big and complex. The first tier, second tier, three tier cities, southern and northern, Eastern and Western are not the same. The market is too complicated and the consumption concept is very different. So luxury brands are not afraid, because he knows that some people are rational, have good taste, do not consume, but there will still be many people holding me.

Therefore, luxury brands have a sense of reliance in the short term.

But in the long run, this psychological damage is the long-term development of luxury brands themselves.

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< p > < strong > four, crazy digging is reduced to "rotten Street" image < /strong > /p >

In the past few years, LV has been considered as a mass swamp, known as the "street bag", and the Shanzhai products emerge in an endless stream. P is gradually abandoned by the Chinese rich people.

"I have two LV handbags, though they are still popular, but I will never recite them again."

This is a white-collar worker working in a multinational cosmetics company. "I don't think this brand is suitable for me," he sighed.

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< p > "real rich, real millionaires, they will not buy LV or GUCCI, because they are too big."

Lei Xiaoshan, founder and managing director of China Market Research Group (Shaun Rein), said, "rich people are getting richer and richer. They are eager for the exclusive product and their personality."

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Less than P, however, the problem of brand popularity is far from LV. Recently, Cartire, known as "the jeweller's emperor, the jewellery merchant", has been accused of becoming the next LV.

This brand is the Royal jeweler of European countries. In the eyes of Chinese consumers, Cartire is the high-end representative of three words, but in the past year, its number of stores in China has decreased by 10.

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< p > it is reported that Hugo boss is the only Chinese shop owner behind Cartire and has 142 stores in China.

"It's so popular that you can see Hugo boss in many places.

Besides, there are many brands that are right now.

If we say that there are more than ten cities in a city, it will greatly affect the high-end positioning of the brand, so the number of brand stores must be controlled.

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< p > substance is scarce. For luxury goods, not more people have the better. In Europe, the top brands of Hermes and LV will limit the purchase quantity of each foreign passport and can not be purchased casually.

Because for high-end brands, everyone is used, it is actually a derogation of the value of luxury brands.

The Chinese market is too big, the consumption is too strong, some brands pursue the maximum profit, expand their development madly, and bring very beautiful results to the brands and the group's earnings in a short time, but the short-term development really damages the long-term strategic development and growth in China, and many brands are in danger.

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< p > < strong > five, luxury brands are on the decline? < /strong > /p >

< p > what is a real luxury? Some media people believe that they are qualified to meet the three conditions of "precious material, exquisite workmanship and scarce quantity".

However, some analysts believe that many luxury brands today have run counter to their connotations.

In the past 30 years, the luxury industry has changed greatly with the development of the mass market and the emerging market. The most important change is that luxury goods begin to be industrialized and collectivize.

With mergers and acquisitions, luxury brands may become the prey of new owners pursuing profits.

Some luxury brands deviate from the original concept of luxury goods under the guidance of short-term economic goals, and they are forced to sacrifice their core products or mass production.

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< p > "has been polluted by commerce."

Insiders say that luxury is no longer what it used to be.

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< p > Fashion Writer Dana Thomas wrote in the book of luxury! The average brand has a profit of 10-13 times higher than the investment capital.

And thorough capitalist operation, and making every effort to earn more profits, will drive them to steal and replace, and even shoddy, even quietly pferring production lines to developing countries, ruthlessly exploiting local labor force, and bringing about the devastating disaster of the environment.

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< p > utilitarian market motives make more and more luxury brands "go to the dogs".

However, some famous commentators denied the use of the word "depravity", instead, she used the word "decline".

"I think some brands' ambition to pursue profits in China has led to the decline of brands."

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< p > a luxury industry insider told Chinese news media that the brand wants to create high profits, and every business wants it.

The relationship between brand and product is not well controlled.

Value has shifted from brand to user, from user to brand.

For luxury brands, it is urgent to stop the crazy and blind expansion and reconsider the future development based on the Chinese market.

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< p > initially, luxury goods came to China, subconsciously thought that China's consumption concept was very low, underestimated the Chinese consumption IQ and EQ, but the learning speed of Chinese consumers exceeded their understanding.

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